French luxury group LVMH, which owns brands like Louis Vuitton, managed a record profit in 2016 thanks to its better-than-expected performances in the United States and Europe.
Difficult second part of 2017
LVMH’s fourth quarter turnover reached 11.27 billion euro and an 8 % like-for-like growth, both well beyond analysts’ expectations. For its full fiscal year, the company turnover grew 5 % to 37.6 billion euro and thanks to those record numbers, its recurring profit jumped up 6 % to 7.03 billion euro, which is also more than what analysts had expected (6.8 billion euro).
The Fashion & Leather Goods, which brings in the most turnover, experienced a 3 % turnover growth to 12.775 billion euro, although the company’s other divisions also grew, with the cosmetics division’s turnover up the most (+ 6 %).
Despite the positive results, CEO Bernard Arnault still points to possible problems in 2017 and mainly in the second half of the year. The full impact of the Brexit is still unclear and Donald Trump’s decisions as the new President of the United States may also influence the company’s performance next year.
